Attitude Of Consumers Towards Public Utilities

(A Case Study Of Power Holding Company Formerly Called Nepa)

5 Chapters
|
75 Pages
|
9,552 Words

Consumer attitudes toward public utilities such as water, electricity, and gas are influenced by various factors, including reliability, affordability, and service quality. Additionally, perceptions of utility companies’ responsiveness to customer needs, transparency in billing practices, and efforts towards sustainability play significant roles in shaping consumer sentiment. Public utilities are essential services, and consumers often evaluate them based on their ability to meet basic needs efficiently and effectively. Moreover, advancements in technology and the increasing emphasis on environmental conservation have led consumers to seek eco-friendly options and demand greater accountability from utility providers. Thus, the consumer attitude towards public utilities is a complex interplay of practical considerations, environmental consciousness, and expectations for reliable service.

ABSTRACT

The success or failure of product or service depends on the attitude of consumers towards it. That is why the research instrument I used was questionnaire and interview. The questionnaire was drawn and randomly distributed within the indicated area of study. The research also made use of oral interview to supplement questionnaire.
Data was collected from seven zones such as New Heaven, Asata, Achala-Layout, Ogui Urban, Ogui New Layout, Ogbete (Camp) and Agabni Road.
Bourley was used to determine the sample size.
Also, chi-square was used to analyze the hypothesis and know also when to accept or reject the null and alternative hypothesis.

TABLE OF CONTENT

Title page
Approval page
Dedication
Acknowledgment
Abstract
Table of contents

CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problems
1.3 Objective of the study
1.4 Scope of the study
1.5 Limitation of the study
1.6 Research hypothesis
1.7 Significance of the study

CHAPTER TWO
2.0 Literature review
2.1 consumer behaviour
2.2 Marketing application of consumer behaviour theory
2.3 How to measure attitude
2.4 Concept of public utilities
References

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 Introduction
3.1 Research methodology
3.2 Instrument of data collection
3.3 Area of coverage
3.4 Population of the study
3.5 Sample size determination/procedure
3.6 Validity of instrument instruments

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSION OF FINDINGS
4.0 Data presentation and analysis
4.1 Data presentation result summary and findings
4.2 Testing of hypothesis

CHAPTER FIVE
5.0 Summaries of finding, recommendation s and conclusion
5.1 Summary of finding
5.2 Recommendations
5.3 Conclusion
Reference
Bibliography

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This research work is aimed at determine attitude of consumers towards public utilities.
The power holding company (formally called NEPA) was established by Decree No 24 of 1st April 1972 with the amalgamation of Electricity corporation of Nigeria (ECN) and Niger Dan Authority (NDA). Power Holding Company formerly called NEPA was empowered to maintain an efficient coordinated and economic system of Electricity supply to all the Nooks and Crannies of the nation. Major power stations namely Yola, Delta and Afam thermal power station of Kanji power station serving more than two million customers nationwide. They propelled the nations technological and industrial growth, Power Holding Company formerly called NEPA has become the fastest and biggest growing electricity industry in Africa and in deed the developing world with impending condition like he ever-rising consumers debts vandalization of NEPA installation, high cost of maintenance inadequate gas supply, low water level at the hydro power station, high cost of foreign exchange and the abysmally low tariff regime.
Power Holding Company formerly called NEPA has always striven to meet its distribution and marketing of stable electricity to its numerous residential commercial and industrial customer against all odds. Inspite of some of its familiar operational shortcomings, PHC has made gaint – strides in the production and marketing of Electricity to the nation and beyond. A principal beneficiary of PHC. Extended electricity programme is the Republic of Niger under agreement with NIGELEC (Niger Electric Company) that country’s electricity monopoly.
Similarly, in Sept 1996 an undertaking was signed between PHC and commercial Electrique Du Benin(CEB) which is responsible for the production transportation of electric energy in the Republic of Benin and Togo. Nigeria Government Policy on the development of public corporation was clearly defined in the year 1970/1974 Second National Development Plan document as follows:
“Statutory corporation and state owned company have become an important tools to public entertainment in the development process. Their primary aim is to stimulate and accelerate national scarcity and structural defects in private business organization. There are also basic consideration arising from the dangers of leaving vital sectors of the national economy to the wimps and caprice of the private sector often with the direct and remote control of foreign large scale industrial companies. Public corporation are therefore crucial in Nigerians quest true National economic independence and self reliance. The Power Holding Company formerly called NEPA being one of the statutory corporations is a household name.
Presently, the corporation is gradually bringing a lot of re-thinking into the minds of Nigerian entrepreneur both private and public from making them to actually appreciate the modern market concepts, a management
orientation which hold the key task of the organization to deliver the desired satisfactory service more effectively and efficiently.
Meanwhile, one of the implication of the concepts is that the consumers in any market segment will favour the offer of the organization who come close to satisfying the consumer’s particular needs and wants. Therefore, it is necessary for an organization to seek to understand customers preference, habits behaviour and criticism and to do this, the organization has to research into those things that attract consumers interest and influence their behaviour.
Moreover, setting up an organization for the purpose mentioned before, an organization should better hold it responsible that survival of the organization depends much on the attitude of consumers towards the organization and its product or services.
However the main priority of the management of Power Holding Company formerly called NEPA at Enugu metropolis is to identify influences on the attitude of consumers towards the organization the knowledge of variables, the consumers opinions, feelings and ideas about their services will help management of the marketing mix in other to achieve their objective. Also, it will enhance growth, expansion and to ensure greater rate of returns in public utilities. PHC. As a monopolist service industry recognize the important variable and even exploring other means of providing better services. Discussions on PHC features regularly on the pages of the periodical and dallies as well, as on the Radio and Television Programme. The frequency at which the newspaper and margarines publish materials on PHC tends to portrary the importance of electricity industry economic development.
Finally, this research work is a conscious effort towards X- raying the overall customers attitude in relations to productivities and efficient power supply of electricity often referred to as heart beat of the nation.

1.2 STATEMENT OF PROBLEM
This study is intended to find out the attitude of consumers towards
Public utilities. The growth and survival of an organization such as NEPA is paramount. This positive growth achievement of organizational goal is anchored on the effective performance of the organization.
The problem is to determine the people’s response to price of public utilities positively or negatively. They respond negatively when PHC give much bills to consumers, which they did not expect.
Determine consumers view about Power Holding Company formerly called NEPA and also determine the extent to which public demand PHC services.

1.3 OBJECTIVES OF THE STUDY
The persistent public out cry over the authority’s erratic power supply juxtaposed with the numerous excuse offered by the Authority, some of which tends to expose the consumers to blame for the cause of the matter while the consumer accuses PHC of inadequate service and the Authority also make counter accusation on the consumers for what it describes as their non co-operative attitude.
It is in the face of this controversy that the researcher embarked on this project with the following.
1. To determine the ideas, attitude and consumers view about PHC at Enugu metropolis.
2. To determine the extend to which service of PHC is demanded compared to other public utilities
3. To find out the impression consumer have about the price of organization service on relations to its quality.
4. To analyse ways of wining consumers favourable attitude and there improve the share among other service.

1.4 SCOPE OF THE STUDY
This study is limited to finding out how consumers rate or regards services rendered by public corporation with special reference to Power Holding Company formerly called NEPA Enugu office.

1.5 LIMITATION OF THE STUDY
During the course of writing the project topic the research encountered some problem associated with finance, time and data collections.
FINANCE: Finance is the background of every plan going by the present economic hardship facing the entire country, I have limited finance which will not also found it difficult to purchase much of my requirement so I could only carry out the research works much, my purpose could carry me.

TIME: One of the greatest shortcoming was time factor for the mere fact that I am a student taking recognizance of the academic region facing me as a final year student and it is incumbent on me to attend classroom lectures carryout assignment, writing of term papers. Therefore I could not find it convient in completing such until this task, particularly in the area of field survey, which involves going out in Enugu metropolis. Data collection.
DATA COLLECTION: Collection of information of a several from actual users may not be willing to give reasons, why they use it, where as some will not want to disclose their income level of relevant information about the information themselves in cost case, the deflect appointment.

1.6 RESEARCH HYPOTHESIS
Hypothesis according to Webster means “A presentation put forward
a basis for reasoning a sub-position formulated from proved data and presented as a temporary explanation of occurrence as science in order to establish a basis for future use.
Ho: Power Holding Company formerly called NEPA, service, price and quality are not acceptable to consumer.
H1: Power Holding Company formerly called NEPA, service, price and quality are acceptable to consumer.
Ho: Consumer attitude towards the service of Power Holding Company formerly called NEPA are not favourable.
H1: Consumer attitude towards the service of Power Holding Company formerly called NEPA are favourable.

1.7 SIGNIFICANCE OF THE STUDY
It will also be seen as a reference point for students who might be carrying out research on similar or related topic. It will also help the government to assess the services ability of Power Holding Company formerly called NEPA and know whether to constitute similar or parallel organization. It will help the Power Holding Company Management to identify areas that they are lacking and effective ways of increasing performance for customer satisfaction.

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Attitude Of Consumers Towards Public Utilities:

Consumer attitudes towards public utilities can vary widely based on a range of factors, including their experiences, expectations, cultural influences, socioeconomic status, and personal beliefs. Here are some common attitudes that consumers might have towards public utilities:

  1. Dependence and Necessity: Public utilities such as water, electricity, and natural gas are considered essential services. Consumers generally view these utilities as necessities for daily life and can be highly dependent on them. As a result, they may feel frustrated or even outraged if there are disruptions in service.
  2. Reliability and Consistency: Consumers expect public utilities to provide reliable and consistent services. Frequent outages, interruptions, or fluctuations in service can lead to frustration and a negative perception of the utility provider.
  3. Customer Service: Attitudes toward public utilities are often influenced by customer service experiences. Good customer service can enhance positive attitudes, while poor customer service can lead to frustration and dissatisfaction.
  4. Cost and Value: Consumers often weigh the cost of public utility services against their perceived value. Higher costs without a corresponding increase in service quality or reliability can lead to negative attitudes.
  5. Environmental Concerns: Consumers today are increasingly concerned about the environmental impact of public utilities. Utilities that focus on renewable energy sources and sustainable practices may be viewed more favorably by environmentally conscious consumers.
  6. Technological Innovation: Consumer attitudes can also be shaped by the level of technological innovation and modernization in public utilities. The adoption of smart meters, online bill payment systems, and other technological advancements can positively influence consumer perceptions.
  7. Transparency and Communication: Open and transparent communication from utility providers about changes, maintenance, and issues can foster positive attitudes. Lack of information or vague communication can lead to suspicion and negativity.
  8. Public vs. Private Ownership: Depending on the region and culture, consumers might have differing opinions on whether public or private ownership of utilities is preferable. Some may believe that public ownership ensures equitable access and fair pricing, while others might see private ownership as more efficient and competitive.
  9. Safety and Health Concerns: Utilities like water supply are closely linked to health and safety. Consumers may have strong attitudes about the safety and purity of the water they consume, the air quality affected by utility operations, and the potential risks associated with utility infrastructure.
  10. Regulation and Accountability: Regulatory oversight can influence consumer attitudes. Consumers may feel more confident in utilities that are subject to strict regulations, as they believe this ensures accountability and prevents abuses.
  11. Community Impact: Public utilities often play a role in the economic and social development of communities. Attitudes may be influenced by how the utility contributes to local economic growth, job creation, and community well-being.
  12. Cultural and Social Factors: Cultural and social factors can influence how consumers perceive and interact with public utilities. For example, attitudes might be influenced by cultural norms around conservation, sharing resources, or individualism.

Overall, consumer attitudes towards public utilities are complex and can be influenced by a multitude of factors. Utility providers that prioritize reliability, transparency, cost-effectiveness, sustainability, and positive customer experiences are more likely to foster positive attitudes among consumers.